TSX.V: SCZ
VANCOUVER, July 17, 2014 /CNW/ - Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the "Company" or "Santacruz") is pleased to announce second quarter
2014 production of 169,800 payable silver equivalent ounces from the
Company's Rosario Mine in San Luis Potosi, Mexico. This production
represents a 40% quarter over quarter increase as compared with Q1 2014
payable silver equivalent ounces and the Company remains on schedule to
meet its production target of between 850,000 to 1,100,000 silver
equivalent ounces by the year-end 2014.
During the second quarter, the mine produced at an average daily rate of
approximately 260 tonnes per day ("tpd"). By the end of the quarter,
the mine was producing above 340 tpd as a daily average, while
continuing to ramp up as more working faces are added into our
production schedule. A chart summarizing the Rosario Minel total tonnes
milled for January to June 2014 is available at the following link:
http://www.santacruzsilver.com/i/misc/2014-NR-664893-FIG1.jpg
"Consistent with our planning, the Rosario Mine continues to see rapid
improvements on many fronts including tonnes mined and milled. As our
ratio of ore from stopes to development ore continues to increase, our
mining cost will be reduced significantly" stated Arturo Préstamo, CEO
of Santacruz. "In addition, our cost savings initiatives have started
to produce results in the overall Rosario Mine operations. Cost savings
is and will always be a very important part of our day-to-day
operations and with that in mind, good consistent processes and
practices are being established."
Second Quarter 2014 Operations Highlights (Compared to 1st Quarter 2014)
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Ore processed grew 10.5% to 22,612 tonnes (all ore milled is now from
the Rosario Mine);
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Metal production increased 39.4% to 169,800 payable silver equivalent
ounces ("Ag eq oz");
-
Silver production totalled 100,200 silver ounces ("Ag oz");
-
Underground development of 1,494 meters;
-
Recoveries for silver increased to 89.9% from 85.7% in the first
quarter.
2014 Second Quarter Operational Highlights
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Operations Summary
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Q2 2014
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Q1 2014
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Change
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Ore processed (tonnes milled)
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22,612
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20,447
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10.6%
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Silver equivalent ounce production 1
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169,805
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121,800
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39.4%
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Silver ounce production
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100,200
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94,325
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5.9%
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Gold ounce production
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106.8
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162.9
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-34.9%
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Lead production (tonnes)
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171.7
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186.1
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-8.4%
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Zinc production (tonnes)
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436.8
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367.6
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15.9%
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Total underground development (m)
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1,494
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1,216
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22.83%
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Note 1
EqAgOz=(Au*Pau/31.1035)+(Ag*Pag/31.1035)(+(Cu*Pcu*22.05)+(Pb*Ppb*22.05)+(Zn*Pzn*22.05)
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(Pag)
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Metal Prices: Ag $20, Au $1,250 Pb $0.96, Zn $0.88
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Second Quarter 2014 Grade & Recovery Table
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Au
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Ag
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Pb
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Zn
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g/t
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%
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0.21
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153
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0.86
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2.29
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Total Recoveries
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70.4%
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89.9%
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88.2%
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84.4%
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Development Plan for 2014
Development at the Rosario Mine was steady with 1,494 metres of
development completed in the quarter which is up 22.83% from Q1 2014.
The focus was on developing the stopes on Level 2 and increasing the
number of mining faces to have flexibility in the mine plan. In
addition, the Company completed a sub-level between Level 2 and Level 3
which will provide additional mining faces and production as the main
ramp continues to Level 3 by the end of this month. The competency of
the rock has improved at depth and this will allow for more
cost-effective and efficient development work to be completed.
For the balance of 2014, the Company will continue to focus on new stope
production on the various levels that are being worked.
Qualified Person
All technical information included in this statement has been reviewed
and approved by Donald E. Hulse P.E. of Gustavson Associates LLC. Mr.
Hulse is independent of the Company and a qualified person, pursuant to
the meaning of such terms in National Instrument 43-101 Standards of Disclosure for Mineral Projects.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with a producing mine
(Rosario); two advanced-stage projects (San Felipe and Gavilanes) and
an early-stage exploration project (El Gachi). The Company is managed
by a technical team of professionals with proven track records in
developing, operating and discovering silver mines in Mexico. Our
corporate objective is to become a mid-tier silver producer.
'signed'
Arturo Préstamo Elizondo,
President, Chief Executive Officer and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Forward looking information
Certain statements contained in this news release, such as planned
production levels, grades, mine and mill development, mill recovery
rates and the acquisition of mineralized material from third parties,
constitute "forward-looking information" as such term is used in
applicable Canadian securities laws. Forward-looking information is
based on plans, expectations and estimates of management at the date
the information is provided and is subject to certain factors and
assumptions, including, that the Company's financial condition and
development plans do not change as a result of unforeseen events, that
the Company obtains regulatory approval, that the Company is able to
obtain material from third parties on reasonable terms, future metal
prices and the demand and market outlook for metals. Based on the
Company's geological model and currently known mining blocks, the
Company anticipates improved silver head grades and silver recoveries.
Forward-looking information is subject to a variety of risks and
uncertainties and other factors that could cause plans, estimates and
actual results to vary materially from those projected in such
forward-looking information. Factors that could cause the
forward-looking information in this news release to change or to be
inaccurate include, but are not limited to, the risk that any of the
assumptions referred to prove not to be valid or reliable, that
occurrences such as those referred to above are realized and result in
delays, or cessation in planned work, that the Company's financial
condition and development plans change, delays in regulatory approval,
risks associated with the interpretation of data, the geology, grade
and continuity of mineral deposits, the possibility that results will
not be consistent with the Company's expectations, as well as the other
risks and uncertainties applicable to mineral exploration and
development activities and to the Company as set forth in the Company's
Annual Information Form filed under the Company's profile at www.sedar.com. There can be no assurance that any forward-looking information will
prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, the
reader should not place any undue reliance on forward-looking
information or statements. The Company undertakes no obligation to
update forward-looking information or statements, other than as
required by applicable law.
Rosario Mine
The decision to commence production at the Rosario Mine was not based on
a feasibility study of mineral reserves demonstrating economic and
technical viability, but rather on a more preliminary estimate of
inferred mineral resources. Accordingly, there is increased uncertainty
and economic and technical risks of failure associated with this
production decision. Production and economic variables may vary
considerably, due to the absence of a complete and detailed site
analysis according to and in accordance with NI 43-101.
SOURCE SantaCruz Silver Mining Ltd.
